Benefits of Accounting to Small Businesses

Let’s face it. You didn’t go into business to keep records! You started it because you were good at what you did and you wanted to earn money from it – even a profit after a short while. But Bookkeeping and Accounting? That said, accurate up-to-date financial information about your business is extremely useful. As you grow (increase in transaction volume and complexity), keeping track of income, expenses and investments can make or break your business’ viability. You stand to lose track of costs or miss out on income because you did not have records of who owed what. The result? Your Business could make losses which undermines your reason for starting a business in the first place.

  • Hug An Accountant Today!
hug an accountant today

It’s very simple. A good Accountant will help you save money and stay in business. She will record and make sense of your business transactions and develop a system that organizes your sales, purchases, payments and receipts. With accurate bookkeeping, you are equipped with valuable information including profitable clients, profitable products, a list of cost overheads, sales over time, cost per unit sold overtime and so much more. This not only helps you see where you have gone as a business but critically, where you can go in the future. Here are 6 benefits of having an Accountant

  • Time-Saving
Time saving for small business accounting

Bookkeeping takes a lot of time and effort. That’s time you can use being pushing your sales. But because you don’t link Accounting to sales, you might prefer to push it to the bottom of your to-do list until a tax-filing deadline creeps up on you and you start struggling, risking errors and late-filing fines and penalties. This will not be the case if you have an Accountant who stays on top of all that for you.

  • Stem Leakages From Debtors
being in control of your business

Cash is the blood of a Business. Late and unpaid invoices from customers who owe you money can undo your cash flow. Working with your Accountant, you can create a process where debtors are never forgotten. This could include sending out reminders for late bills via mail, SMS and Instant Messengers such as WhatsApp, making phone calls or issuing late-fee penalties.

  • Gets You Focused On Growing Your Business
focusing on growth in a business

With a good understanding of your business income and expenses, you get a better handle on your finances. An Accountant, can help with forecasting and budgeting seasonal business situations and keep undue spending at a minimum whilst lowering operating expenses where possible thereby helping you plan and save for the future.

  • Zero-Headache Tax Season
Reducing tax

Tax does not need to be taxing. An Accountant can help you navigate choppy tax waters, again saving you time, money and stress from tax authorities. He can help you get ahead by providing you with a clear picture of your business’ profit or loss in advance thereby arming you with knowledge of your annual tax obligation. Tax surprises will become near Zero! On the whole, with your paperwork in order, it becomes easier for you to prepare and complete accurate tax returns.

  • Stay Audit-Ready
accounting and audit

With an Accountant keeping your records, you won’t have to worry about getting your books organized in a rush when the time arises. Good Accounting is your best defense against tax authorities and a reliable attach when engaging investors and lending institution inquiries. Without proper records to support your income tax returns, non-business income items may deem taxable as income. Similarly, legitimate expenses can be disallowed thereby increasing your tax burden across board. Also, in the event that you want to sell the business or secure capital to grow, having verifiable financial records of your past performance, i.e., audited and signed by an auditor, actually increases the value of your Business.

  • Makes loans from banks and other creditors ease to secure
bank loans need accounting records

Sometimes, financial creditors rely on accurate information about the financial position of your business to consider you for a loan. Good accounting not only gives prospective creditors the impression that you know your business inside out. It also makes it easier to secure capital when you are can clearly outline your past performance, giving banks and other lenders the assurance that you have a solid track record and a good handle on your business’ finances.

  • Put Credit Missing Or Deductions Under Control
tax can be cut down

When proper Bookkeeping is lacking, tax credits (a benefit to the business) could be overlooked or lost.  Similarly, some work is involved when it comes to identifying and submitting expenses the Business can claim to reduce its tax burden e.g., Capital Allowances from buying equipment. Ignoring a deduction implies paying more taxes than you ordinarily should. The Accountant, however, gets everything organized so you are in a position to maximize the tax gains from certain transactions.

  • A Cost-Saving Strategy – BMAC Virtual Accounting Services
virtual acounting from BMAC

It can be cost-effective to hire an Accountant on an outsourced basis. This is the service ikOOba offers in its BMAC Virtual Accounting Services. With the BMAC Virtual Accounting Service, our inhouse Accountants provide clients with reliable Bookkeeping, Accounting and Strategic Financial Planning support. The key benefit for customers is that they can enjoy the benefits of Bookkeeping and Accounting discussed above at a fraction of the cost of hiring a Fulltime Accountant. ikOOba also partners with its sister firm SSAC Advisory & Professionals to provide support to more complex customer challenges including tax advisory services, investment advice, raising business finance, business valuations and a host of other services.

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  1. Pingback: 8 Key Factors to Consider When Choosing Accounting Software For Small business - BMAC Blog

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